eToro: All you need to know

74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.

Table of Contents

• About eToro
• What can you trade on eToro?
• eToro reputation
• eToro education
• eToro fees
• eToro leverage
• eToro platform
• eToro FAQs

eToro^↗︎ is a renowned online social investing platform that allows users to trade stocks, shares, and funds commission-free. Additionally, it offers options for trading contracts for difference (CFDs) and foreign exchange. One of its standout features is its social aspect, fostering a community of investors who can connect, learn, and share insights with one another. Moreover, investors can benefit from the option to copy trade top-performing traders.

The company was founded in 2007 in Israel by brothers Yoni Assia and Ronen Assia together with David Ring as RetailFX. It later rebranded to eToro in 2010 when the firm introduced the eToro OpenBook social investment platform.

eToro is highly secure and regulated by CySEC, FCA, MiFID, and ASIC. It is also protected by the Financial Services Compensation Scheme, which means that any funds or assets held by eToro UK are regarded as investments and qualify for compensation of up to £85,000 per person, although cryptocurrencies are not covered.

What can you trade on eToro?

With eToro you can invest in international stocks and ETFs commission-free, meaning you do not pay spread, management, or rollover fees. You can also buy cryptocurrencies; however, commission-free does not apply to crypto assets.

In addition, you can also trade more than 5000 instruments, including stocks, forex, indices, ETFs and commodities, through CFDs.

Is eToro a good broker?

eToro is authorised to operate in several countries worldwide and is highly regulated. In the UK, the Financial Conduct Authority (FCA) regulates eToro, and its firm reference number is 583263.

eToro reviews are mixed across the board. The broker has a trust score of 4.4 on Trustpilot with 22% out of 20,386 reviews being negative.

Education

eToro traders can benefit from a wealth of educational resources designed to help them improve their trading skills and make informed decisions in the financial markets. The broker offers a wide range of educational materials, including videos, articles, podcasts, and courses, covering a variety of topics related to trading, market analysis and risk management.

The broker also provides platform tutorials to help new investors navigate their trading platform effectively. These tutorials provide a step-by-step guide on how to use the different features of the platform.

Spreads and Fees

In general, eToro has low fixed fees. Unlike its competitors, the broker does not impose a commission when opening CFD trades, and its spreads begin as low as 1 pips for currencies and 2 pips for commodities.

For indices spread starts at 0.75 points. The spread for stock/ETF CFDs is 0.15%.

eToro charges a single, simple and transparent fee of 1% for buying or selling cryptocurrencies.

Other fees include swap fees, also known as overnight funding, as well as a currency conversion fee of 0.5%. There is also a $5 withdrawal fee.

An inactivity fee is charged to users who do not log in for twelve months; a monthly fee of $10 will be subtracted from their account balance.

eToro Leverage

The maximum leverage offered by eToro for CFD trading is 1:30, which is in compliance with regulatory requirements.

1:30 for major currency pairs (such as EUR/USD).
1:20 for non-major currency pairs (such as EUR/NZD), Gold, and major indices.
1:10 for commodities other than Gold and non-major equity indices.
1:5 for CFD stocks and ETFs.
1:2 for CFD cryptoassets.

Trading Platform

eToro provides a user-friendly and intuitive trading platform suitable for both novice and experienced investors. The broker offers Android and iOS mobile apps consistent with its web and desktop versions.

The eToro platform offers a range of user-friendly tools designed to enhance your trading experience. Among these are:

CopyTrader: A popular feature allowing you to effortlessly follow and copy the trades of successful investors, even with a minimum investment of $200 (£148) per trader.

Smart Portfolios: This portfolio management product automatically replicates multiple markets based on eToro’s in-house investment strategy, with a minimum investment requirement of $500 (£370).

Watchlists: Create and maintain personalized watchlists for assets listed on eToro, making it easy to track prices, daily performance, and community sentiment.

Portfolio Overview: Get a clear snapshot of your portfolio’s performance, including invested amounts, returns, and losses, all accessible from a single screen.

Investment Opportunities: Explore the discovery section to identify the best-performing markets, assets, and traders, providing you with excellent investment prospects.

Advanced Charting: Access interactive and advanced charting tools, enabling technical traders to analyse market data, identify trends, and make predictions using elements like trend lines and support and resistance areas.

Risk Management: Benefit from eToro’s outstanding risk prevention tools, including stop losses, trailing stops, and leverage limits, to protect and manage your investments effectively.

Education & Market News: Stay informed with access to the latest market news and educational resources available in the eToro academy.

eToro does not provide universal alternatives such as MT4, MT5 or cTrader.

Takeaway

eToro is an experienced broker with a variety of regulatory licenses, making it a trustworthy and well-established company.

The platform is a great option for new investors. Its account opening process is speedy and effortless, and the platform is user-friendly, making it an excellent choice for those with a basic grasp of stocks, forex, and cryptocurrency trading.

💡 74% of retail investor accounts lose money when trading CFDs with this provider.

eToro FAQs